Ministerial Screening: Why I Cancelled NNPC Contracts – Nominee

Ibe Kachikwu who is the group managing director of the Nigerian National Petroleum Corporation (NNPC) and a ministerial nominee has revealed that the reason why some contracts were cancelled when he took over as NNPC boss was for transparency reasons.

Kachikwu took over as director of NNPC about six weeks ago before his name was submitted as a ministerial nominee.

At the screening plenary on the floor of the Senate he said that refineries have to work first in other for fuel to be available to all Nigerians. He noted that the reason why investors are shying away from the business of kerosene was because it seemed not to be lucrative. He said that since gas was not available in every household, kerosene still remained an important fuel.

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“Kerosone still remain the bread and butter for an average Nigerian.”

The NNPC boss noted that corruption was a huge cog in the wheel of progress of the NNPC but said President Muhammadu Buhari had showed his readiness to tackle the problem.

“There is however the corruption and structure problem at the NNPC… We are in an era of a president ready for fundamental change. “

He talked about the various reactions that have trailed the cancellation of some contracts. He explained that these decisions were based on transparency.

“When we cancel contracts, it is not against the individual but the structure. We want best value and transparency in our contracts.”

In response to Senator Hunkuyi Suleiman’s question on fuel subsidy removal, he said at the moment, it would be unrealistic to remove subsidy, adding that palliative measures needed to be in place before subsidy could be removed.

He said: “Removal of subsidy calling it unrealistic, unless these primary issues are tackled the subsidy will remain.”

He promised that if he is confirmed as minister, he would consolidate on the changes that have come into the NNPC in the past six weeks.

“If confirmed minister, I will consolidate on the changes he has brought into the oil industry in the last six weeks of his appointments as GMD of NNPC.”

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He noted that other countries that relied on oil were leaving Nigeria behind. He cited Qatar and Dubai as two countries that have invested in gas. He said as someone from the southern part of the country, he understood the plight of the people from the region and the issue of gas flaring can be made a blessing if the country could invest in gas.

Today is the second day of ministerial screening which commenced on Tuesday, October 13.

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